Taxation of Off-Road Vehicles

All-Terrain Vehicles

ATVs are not subject to the Purchase and Use Tax, but are subject to Sales & Use Tax. ATVs are not eligible for a Purchase and Use Tax Exemption.

  • ATVs purchased from a dealer (or business) and registered in Vermont; the dealer (or business) must submit a tax form to the Vermont DMV.
  • For ATVs purchased as a casual (private) sale, no Sales & Use Tax is due.
  • A Vermont resident who purchases an ATV from an out-of-state dealer must prove payment of the out-of-state Sales & Use Tax (equal to, or greater than the rate of Sales & Use Tax in Vermont).

Questions about Sales & Use Tax should be referred to the Vermont Department of Taxes.

Motorboats

The first registration or validation of a vessel/personal watercraft (Jet-ski)/shuttlecraft in Vermont is subject to the Sales & Use Tax unless:

  • A purchase invoice is presented showing a Sales & Use Tax (equal to the amount of the current Vermont Sales & Use Tax or greater) paid to a dealer in any one of the 45 state jurisdictions imposing a Sales & Use Tax. Note: Alaska, Montana, Delaware, New Hampshire, and Oregon do not have a Sales and Use Tax.
  • The applicant for the Motorboat Registration is a non-resident of Vermont and purchased the vessel in a state other than Vermont (while a non-resident).
  • The applicant for the Motorboat Registration is a non-resident of Vermont and purchased the vessel in Vermont, but received title or possession (or both) in another state.
  • The applicant for the Motorboat Registration is a non-resident of Vermont and submits a copy of a valid registration from his/her home state.
  • The vessel is/was acquired through a transfer to an individual (relative or not) for no consideration.

Questions about Sales & Use Tax should be referred to the Vermont Department of Taxes.

Most questions regarding motorboat transactions are answered in the instructions portion of the Vermont Motorboat Registration Application (form #VD-037i).

See Motorboat taxation rate.

 

Snowmobiles

Vermont Residents: The Sales & Use Taxx is due at the time of the registration unless you (the registrant) have obtained an exemption letter from the Vermont Department of Taxes. A credit (up to the amount equal to the current Vermont Sales & Use Tax) will be given for Sales & Use Tax paid in another state if proof of purchase showing the amount of tax paid is presented with your Snowmobile Registration Application.

Non-residents: No registration or tax is due if you (the registrant) currently have the snowmobile registered in your home state/province and display a valid Vermont Trail Maintenance Assessment (TMA) sticker issued by the Vermont Association of Snow Travelers (VAST).

  • If your snowmobile is not currently registered in another state/province and displaying a valid TMA sticker issued by VAST and you will be using the snowmobile in Vermont registration is required.
  • No tax is due if you present a valid/expired snowmobile registration from your home state/province.
  • No tax is due if you purchase a snowmobile in Vermont and take delivery out-of-state.
  • Sales & Use Tax is due if you purchase a snowmobile in Vermont and take delivery in Vermont.
  • No tax is due if the snowmobile is purchased out-of-state by a non-resident.

Most questions regarding snowmobile transactions are answered in the instructions portion of the Vermont Snowmobile Registration Application (form #VD-038).

Questions about Sales & Use Tax should be referred to the Vermont Department of Taxes.

Download the PDF form to your computer and then open it with Adobe Reader

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Vermont Department of Motor Vehicles
120 State Street
Montpelier, VT 05603-0001

Monday-Friday: 7:45am-4:30pm
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